Define your risk tolerance
First of all, know yourself, truly understand what you WANT and begin with a small sum and ambition. Try not to expose yourself and your money into a high-risk investment in the beginning. Start to trade small and never put all your eggs in one basket because of your greed.
Choose your broker carefully
Obviously, we can’t stress enough how imperative it is to choose a reputable Forex broker. It is one of the most important things you have to do before you fund your account. Make sure the broker you choose is monitored and regulated by authorities and regulators to prevent fraud.
Pick your account type and leverage ratio
After you have funded your account, the first thing to do is to pick your account type and leverage ratio. There are various kind of ratios in the Forex market that may look tempting but don’t forget that leverage can be a double-edged sword. It has the ability to amplify your gain and also your loss.
We all know the time for Forex trading is 24 hours a day, 5 days a week. You can trade whenever you like, depending on your market. The best time to trade is always when the market is most active and has the highest volume of trades going on. It creates more opportunities for traders to make a profit when major markets overlap. London session overlaps with New York session for 4 hours, this overlap has the most movements in the market, creating the perfect timing for trading.
Focus on a single currency pair
Forex trading is all about probability and taking the risk. If you have just started to trade, try and focus on a single currency pair. This can make your studies on Forex easier and simpler as a newbie and obtaining a clearer mindset. Your research can just revolve around those two main countries’ economy so that you will not be overwhelmed by the amount of information you have to absorb in the beginning.
Restrain your emotions
Keep your day job, don’t quit just because you gain more in trading than losing. Forex trading is a journey that is filled with lots of ups and downs so having a correct mindset is crucial. You had to have a good attitude before you trade, throw your greed out of the equation, recognize your failures and try to accommodate them if they can’t be eliminated completely.
Study money management
Before you start funding your account, make sure you only take 10-20% of your savings to invest in your trading account. Take it as your vacation money, so if you really losses the money, the loss won’t affect your living leading to a ruinous ending.
Don’t give up
Remember, failure is only going to make you stronger. No one gains from the start, and failure will always play a vital part in your trading journey. Stand up again and continue your battle, don’t give up so easily because what comes easy won’t last but what lasts won’t come easy.
What to focus on
Feeling lost in the world of endless Forex trading studies and research? Try and learn the basic economic data of the currency you are trading and the current events that are occurring in the countries. Narrow down your area of study as you master them one by one.
Establish a sensible, meaningful strategy and follow it all the time
Stick to your own trading style and method. Yes, it is good for you to try out different kind of method from time to time, but this is only applicable for a trading newbie. After months of trading, you should develop your own style and stick with it. This gets to create stability and lower the risk.
Strong sense of self-confidence
Forex trading requires a lot of self-confidence, it requires you to adapt to new situations quickly and resiliently in dealing with the changing market. If you believe in yourself, you will be more willing in taking losses (we all know it is inevitable sometimes), knowing you are just wrong in the Forex market just like how other traders are wrong sometimes.
The tips above are going to help you to make an easy approach to Forex trading and become a more refined trader. Forex trading is an art, the only way to master it is studying, observe and practice unremittingly.
So, buckle up and enjoy the ride!